CME Group, the world’s largest derivatives exchange, offers trading in Ethereum futures. The launch of Ethereum futures on the CME came after a successful launch of Bitcoin futures on the exchange in December 2017.
Ethereum is the second-largest cryptocurrency by market capitalization, after Bitcoin. Like Bitcoin, Ethereum is a decentralized platform that runs smart contracts: applications that run exactly as programmed without any possibility of fraud or third party interference.
Ethereum futures will be traded on the CME Globex electronic trading platform and will be settled in U.S. dollars. Trading will be available 23 hours a day from Sunday 5 p.m. CT to Friday 4 p.
m. CT, with a one-hour break each day beginning at 5 p. CT.
The launch of Ethereum futures on CME is seen as a positive development for the cryptocurrency market, as it adds legitimacy and institutional involvement. It also opens up the possibility for Ethereum ETFs (exchange-traded funds) and other products tracking the cryptocurrency.
At this time, it is not clear whether CME will trade other cryptocurrencies besides Bitcoin and Ethereum in the future. However, given the increasing interest in cryptocurrencies from both retail and institutional investors, it is certainly possible that we will see more crypto futures products from CME in the future.
The launch of Ethereum futures on CME Group’s exchange is a positive development for the cryptocurrency market, bringing more legitimacy and institutional involvement to the space. It remains to be seen if other exchanges will follow suit and list similar products tracking other cryptocurrencies, but it is certainly possible that we will see more crypto futures products in the future as interest in this asset class continues to grow.